(Answered) : Business Planning: Budgeting and Breakeven Analysis Budgeting in business is similar to budgeting in your personal life, but

Business Planning: Budgeting and Breakeven Analysis

Budgeting in business is similar to budgeting in your personal life, but it has the added dynamic of variable streams of funds and ever changing expenses. It does not, however, need to be difficult. In fact, if you spend time building a budgeting model (as will be seen in this chapter), you can have great budgets with minimal time investment.

The Budgeting Process

In accounting, there is a concept called Cost Volume-Profit Analysis. This is an intimidating title that simply means this: when your sales go up or down, some of your expenses will change. If you